HUNTINGTON INGALLS INDUSTRIES REPORTS FOURTH QUARTER AND FULL YEAR 2018 RESULTS

• Revenues were $2.2 billion in the quarter; $8.2 billion in 2018 • Operating margin was 9.7% in the quarter; 11.6% in 2018 • Diluted earnings per share was $4.94 in the quarter; $19.09 in 2018 • Cash from operations was $914 million and free cash flow1 was $512 million in 2018 NEWPORT NEWS, Va., Feb. 14, 2019 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) reported fourth quarter 2018 revenues of $2.2 billion, up 10.2 percent from the fourth quarter of 2017. Operating income in the quarter was $213 million and operating margin was 9.7 percent, compared to $231 million and 11.6 percent, respectively, in the fourth quarter of 2017. Diluted earnings per share in the quarter was $4.94, compared to $1.41 in the same period of 2017. 2017 results included one-time expenses related to the early extinguishment of debt, impacts related to the enactment of the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”) and the acceleration of discretionary pension contributions. For the full year, revenues of $8.2 billion increased 9.9 percent over 2017. Operating income in 2018 was $951 million and operating margin was 11.6 percent, compared to $881 million and 11.8 percent, respectively, in 2017. Diluted earnings per share for the full year was $19.09, compared to $10.46 in 2017, which included one-time items described in the preceding paragraph. Cash from operations in 2018 was $914 million and free cash flow1 was $512 million, compared to $814 million and $453 million, respectively, in 2017. New contract awards in the fourth quarter of 2018 totaled $3.3 billion, bringing total backlog to $23.0 billion as of Dec. 31, 2018. Awards in the fourth quarter of 2018 included a $931 million contract for the construction of the 10th and 11th Legend-class National Security Cutters (NSC) for the U.S. Coast Guard and a $883 million contract for the construction of an Arleigh Burke-class destroyer (DDG 131), representing full funding for the third ship of the six ship multi-year contract awarded in the third quarter of 2018. Other major contract awards in 2018 included a $1.4 billion construction contract for amphibious transport dock Richard M. McCool Jr. (LPD 29). “Our 2018 results reflect Huntington Ingalls Industries’ continued execution of our path to 2020 strategy,” said Mike Petters, HII’s president and CEO. “Investing in our facilities, people and capabilities, while winning key contract awards and growing our backlog, positions us well to continue creating long-term value for our shareholders, customers and employees.” 1 Non-GAAP measure. See Exhibit B for definition and reconciliation. Results of Operations Three Months Ended Year Ended December 31 (in millions, except per share amounts) 2018 2017 $ Change % Change 2018 2017 $ Change % Change Sales and service revenues $ 2,199 $ 1,996 $ 203 10.2 % $ 8,176 $ 7,441 $ 735 9.9 % Operating income (loss) 213 231 (18 ) (7.8 )% 951 881 70 7.9 % Operating margin % 9.7 % 11.6 % (189) bps 11.6 % 11.8 % (21) bps Segment operating income (loss)1 148 189 (41 ) (21.7 )% 663 688 (25 ) (3.6 )% Segment operating margin %1 6.7 % 9.5 % (274) bps 8.1 % 9.2 % (114) bps Net earnings (loss) 212 64 148 231.3 % 836 479 357 74.5 % Diluted earnings (loss) per share $ 4.94 $ 1.41 $ 3.53 250.4 % $ 19.09 $ 10.46 $ 8.63 82.5 % Weighted-average diluted shares outstanding 42.9 45.4 43.8 45.8 Adjusted Net Earnings (Loss)2 $ 212 $ 141 $ 71 50.4 % $ 836 $ 556 $ 280 50.4 % Adjusted Diluted EPS2 $ 4.94 $ 3.11 $ 1.83 58.8 % $ 19.09 $ 12.14 $ 6.95 57.2 % 1 Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations. 2 Non-GAAP measures. See Exhibit B for definitions and reconciliations. Segment Operating Results Ingalls Shipbuilding Three Months Ended Year Ended December 31 ($ in millions) 2018 2017 $ Change % Change 2018 2017 $ Change % Change Revenues $ 699 $ 638 $ 61 9.6 % $ 2,607 $ 2,420 $ 187 7.7 % Segment operating income (loss)1 84 75 9 12.0 % 313 313 — — % Segment operating margin %1 12.0 % 11.8 % 26 bps 12.0 % 12.9 % (93) bps 1 Non-GAAP measures. See Exhibit B for definitions and reconciliations. Ingalls Shipbuilding revenues for the fourth quarter of 2018 were $699 million, an increase of $61 million, or 9.6 percent, from the same period in 2017, due to higher volumes for amphibious assault ships and surface combatants, partially offset by lower volumes on the NSC program. Higher amphibious assault ship revenues were primarily related to increased volumes on Richard M. McCool Jr. and Bougainville (LHA 8), partially offset by decreased volume on Tripoli (LHA 7). Higher surface combatant revenues were primarily due to repair and restoration work on USS Fitzgerald (DDG 62). Lower NSC program revenues were primarily due to decreased volumes on Midgett (NSC 8) and the delivered USCGC Kimball (NSC 7). Ingalls Shipbuilding segment operating income for the fourth quarter was $84 million, an increase of $9 million from the same period last year. Segment operating margin in the quarter was 12.0 percent, compared to 11.8 percent in the same period last year. These increases were primarily due to higher volumes noted in the preceding paragraph and higher risk retirement for the DDG and NSC programs. For the full year, Ingalls Shipbuilding revenues were $2.6 billion, an increase of $187 million, or 7.7 percent, from 2017, primarily driven by higher revenues in amphibious assault ships, partially offset by lower revenues in surface combatants and the NSC program. Amphibious assault ships revenues increased as a result of higher volumes on Richard M. McCool Jr., Bougainville and Fort Lauderdale (LPD 28), partially offset by lower volumes on the delivered USS Portland (LPD 27) and Tripoli. Surface combatants revenues decreased due to lower volumes on the delivered USS Ralph Johnson (DDG 114), Lenah H. Sutcliffe Higbee (DDG 123), Paul Ignatius (DDG 117), and the delivered USS John Finn (DDG 113), partially offset by higher volumes on USS Fitzgerald (DDG 62) repair and restoration, Jack H. Lucas (DDG 125), and Ted Stevens (DDG 128). Revenues on the NSC program decreased due to lower volumes on the delivered USCGC Kimball (NSC 7) and Midgett (NSC 8), as well as lower risk retirement across the NSC program, partially offset by higher volumes on Stone (NSC 9) and NSC 10 (unnamed). For the full year, Ingalls Shipbuilding segment operating income was $313 million, compared to $313 million in 2017. Segment operating margin was 12.0 percent for 2018, compared to 12.9 percent in 2017. The decrease in margin was primarily due to lower risk retirement on Tripoli and the NSC program, partially offset by recoveries related to a settlement agreement, higher risk retirement on the DDG program, and the higher volumes described above. Key Ingalls Shipbuilding milestones for the quarter:

• Awarded $931 million contract for the construction of the 10th and 11th U.S. Coast Guard National Security Cutters
• Awarded $883 million contract for the construction of an Arleigh Burke-class destroyer (DDG 131)
• Christened guided missile destroyer Frank E. Petersen Jr.
• Began fabrication of amphibious assault ship Bougainville

Newport News Shipbuilding Three Months Ended Year Ended December 31 ($ in millions) 2018 2017 $ Change % Change 2018 2017 $ Change % Change Revenues $ 1,278 $ 1,139 $ 139 12.2 % $ 4,722 $ 4,164 $ 558 13.4 % Segment operating income (loss)1 57 106 (49 ) (46.2 )% 318 354 (36 ) (10.2 )% Segment operating margin %1 4.5 % 9.3 % (485) bps 6.7 % 8.5 % (177) bps 1 Non-GAAP measures. See Exhibit B for definitions and reconciliations. Newport News Shipbuilding revenues for the fourth quarter of 2018 were $1.3 billion, an increase of $139 million, or 12.2 percent, from the same period in 2017, due to higher revenues in aircraft carriers and naval nuclear support services, partially offset by lower revenues in submarines. Higher aircraft carrier revenues were primarily related to increased volumes on the advance planning contract for Enterprise (CVN 80), the construction contract for the delivered USS Gerald R. Ford (CVN 78), the advance planning contract for the refueling and complex overhaul (RCOH) of USS John C. Stennis (CVN 74), and the execution contract for the RCOH of USS George Washington (CVN 73), partially offset by decreased volumes on the decommissioned Enterprise (CVN 65). Higher naval nuclear support services revenues were primarily due to increased volumes in submarine support services. Lower submarine revenues related to the Virginia-class submarine (VCS) program were due to decreased volumes on Block III boats. Newport News Shipbuilding segment operating income for the fourth quarter was $57 million, a decrease of $49 million from the same period last year. Segment operating margin was 4.5 percent for the quarter, compared to 9.3 percent in the same period last year. These decreases were primarily due to lower performance in the VCS program, primarily Delaware (SSN 791) and Montana (SSN 794), as well as higher risk retirement on the RCOH program in the fourth quarter of 2017. For the full year, Newport News Shipbuilding revenues were $4.7 billion, an increase of $558 million, or 13.4 percent, from 2017, due to higher revenues in aircraft carriers and naval nuclear support services, partially offset by lower revenues in submarines. Aircraft carriers revenues increased primarily as a result of higher volumes on the execution contract for the RCOH of USS George Washington and the advance planning contract for Enterprise (CVN 80), partially offset by lower volumes on the inactivation of the decommissioned Enterprise (CVN 65) and the execution contract for the RCOH of the redelivered USS Abraham Lincoln (CVN 72). Naval nuclear support services revenues increased primarily as a result of higher volumes in submarine support and facility maintenance services. Submarines revenues related to the VCS program decreased due to lower volumes and performance on Block III boats, partially offset by higher volumes on Block IV and Block V boats. For the full year, Newport News Shipbuilding segment operating income was $318 million, a decrease of $36 million from 2017. Segment operating margin for 2018 was 6.7 percent, compared to 8.5 percent in 2017. These decreases were primarily due to lower performance in the VCS program, the resolution in 2017 of outstanding contract changes on the inactivation of the decommissioned Enterprise (CVN 65) and the RCOH of USS Abraham Lincoln, as well as one-time employee bonus payments in 2018 related to the Tax Act, partially offset by favorable changes in workers' compensation expense and the increased volumes described above. Key Newport News Shipbuilding milestones for the quarter:

• Awarded $197 million modification to a previously awarded contract for long-lead time material and advanced construction activities for the first Columbia-class ballistic missile submarine
• Christened and launched the Virginia-class submarine Delaware

Technical Solutions Three Months Ended Year Ended December 31 ($ in millions) 2018 2017 $ Change % Change 2018 2017 $ Change % Change Revenues $ 267 $ 242 $ 25 10.3 % $ 988 $ 952 36 3.8% Segment operating income (loss)1 7 8 $ (1 ) (12.5 )% 32 21 11 52.4% Segment operating margin %1 2.6 % 3.3 % (68) bps 3.2 % 2.2 % 103 bps 1 Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Technical Solutions revenues for the fourth quarter of 2018 were $267 million, an increase of $25 million, or 10.3 percent, from the same period in 2017, primarily due to higher revenues in oil and gas services and mission driven innovative solutions, partially offset by lower volumes in fleet support.

Technical Solutions segment operating income for the fourth quarter was $7 million, compared to $8 million in fourth quarter 2017. The decrease was driven primarily by fleet support performance, partially offset by growth in oil and gas services. For the full year, Technical Solutions revenues were $988 million, an increase of $36 million, or 3.8 percent, from 2017, primarily due to higher revenues in oil and gas services and mission driven innovative solutions, partially offset by lower nuclear and environmental revenues and fleet support revenues. For the full year, Technical Solutions segment operating income was $32 million, compared to $21 million in 2017. The increase was primarily due to an allowance for accounts receivable in 2017 on a nuclear and environmental commercial contract and higher income from operating investments at our nuclear and environmental joint ventures in 2018, partially offset by one-time employee bonus payments in 2018 related to the Tax Act and lower performance in fleet support services. Key Technical Solutions milestones for the quarter:

• Acquired G2 Inc., a cybersecurity solutions and services company